The PAC found that the benefits of allowing mining to continue at Mount Thorley Warkworth outweigh the impacts and they have approved our proposals after a recommendation by the NSW Department of Planning.

A spokesman for Rio Tinto said: “This approval will come as a great relief for thousands of people across Singleton and the Hunter Valley – from our 1300 employees and their families to people working at the hundreds of local businesses that supply the mine and community groups it supports.

“We will thoroughly review the Planning Assessment Commission’s determination now to assess the detail of the findings.”

The NSW Department of Planning’s assessment of a second review of a proposal by Rio Tinto to extend the Mt Thorley and Warkworth found that the impact of the project can be effectively managed through the implementation of strict conditions.

The final decision on the application to extend the Mt Thorley and Warkworth mines was made by the PAC after the department responded to the matters it had raised.

A spokesman for the department said: “The department also concluded that the project would result in a range of broad economic benefits for the region, including ongoing employment for the 1,300 people that work at the mine.

“The department’s assessment found that through the implementation of strict conditions the impacts of the project can be effectively managed, including in Bulga village.”

Last month the PAC said it was satisfied that the benefits from Rio Tinto’s proposed Mt Thorley Warkworth 20 year extension project outweigh its potential impacts and on balance the project is approvable, with strict conditions.

Under NSW’s new mining policy, the PAC “carefully balanced the key areas of concern, including Aboriginal cultural heritage, final voids, air quality and noise, and the socio-economic benefits”, it said.

Rio Tinto is seeking to produce 10 million tonnes of thermal coal a year from the open cut complex after its current permit expires in June 2017.

The recommended conditions require Rio Tinto to comply with strict noise and dust limits; operate a real-time environmental monitoring system in Bulga village and surrounds; regularly report to government and the local community about the environmental impact of the mine; and protect at least 2,900 hectares of biodiversity offset land in the region, including 1,300 hectares of land adjacent to the Goulburn River National Park.

It would also have to establish 1,600 hectares of woodland on the site upon completion of mining; lodge a $1 million bond with the NSW government to ensure the successful regeneration of the endangered Warkworth Sands Woodland; establish an Aboriginal cultural heritage conservation area and contribute $700,000 for managing historic heritage values in the locality; and contribute $11 million to Singleton Council for community enhancement projects focusing on Bulga village.